ETPs - ETFs in Europe

An ETFs dedicated topic.

According to Refinitiv at the end of 2020, these were the Europe’s top 10 ETF providers by AUM: (Data in millions EUR)

With the yesterday announcement, Amundi ETF (5th largest, with 65B EUR AUM and a 6.6% market share) wants to buy Lyxor ETF (3rd largest, with 77B EUR AUM and 7.4% market share).

The new entity will be the 2nd largest ETF provider in Europe with 142B EUR AUM and a 14% market share.

It will surpass the actual 2nd largest ETF provider DWS (Xtrackers) with 117B EUR AUM.

BlackRock (iShares) will stay as leader with 450B EUR AUM and a 45% market share.

The Europe’s top 10 ETF providers already represent a 93% market share.

Source:

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According to Refinitiv at the end of 2020, these were the Europe’s top 10 asset managers (Mutual Funds and ETFs) by AUM: (Data in billions EUR)

Source:

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Thanks for sharing - definitely a major acquisition.

I think we’ll be seeing a lot of the blue in those charts turn black over the coming years, as more and more are converting their mutual funds to ETFs :slight_smile:

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True, it’s a growing trend globally.

Being exchange-traded and having less fees (trackers) are good advantages.

Although a big majority of ETFs are passive ETFs (trackers), also some active ETFs are appearing (some are active mutual funds versions).

But I guess that the active ETFs will be only growing if they have some buzz guru manager behind it. But so many buzz gurus have fallen in disgrace, e.g. Bill Gross (PIMCO) or Neil Woodford.

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Yeah it looks like investors are increasingly becoming comfortable with active & ‘active semi-transparents’ instead if just buying a good ol’ SP500 or FTSE 100 index fund.

It’s just annoying when the name doesn’t always coincide to what you’d expect the holdings to be (*cough ARKX :smiley: ). Also not sure how many more “ESG” versions of existing ETFs can be made…

But a buzz guru is kinda needed in order to make noise, otherwise how do you get the word out if there’s >130 issuers in the US alone. As the saying goes: ETFs are sold, not bought.

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It’s interesting to see the famous Vanguard with so small market share in Europe, both in ETF (6th largest) and in Mutual Funds (10th largest), globally it’s 8th largest Europe’s asset manager by AUM (based in the graphs above).

Also Invesco have little market share in the Europe’s ETFs market. It doesn’t even appear in the combined ETFs + Mutual Funds Europe’s top 10.

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I’d say Europe’s been heavily ignored until now, given the sheer size of the market in the US. Just look at State Street - nowhere in the EU’s top 10, but SPY alone has >$300B AUM.

But I’d say this is changing, as companies like Global X have entered the market here and I think others will follow suit.

Btw here’s a nice chart of some big providers: showing % of assets in their biggest ETFs. Crazy concentration for Pimco and Invesco.

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Yes. Creating alternative investment strategies instead of buying the “whole market” that also have some dead-weights (laggers). We have to be smart betas to create some alpha. :slight_smile:

If it was only ARKX…

Some other ETFs (and Mutual Funds) have some dubious criteria to include some holdings on their portfolio. Even the trackers ones, as we know, they can order any index tailored to the fund manager’s taste (ETFs & Mutual Funds trackers).

ESG funds (and bonds) have some green-washing and also have some dubious criteria choosing their holdings/underlying assets.

Very well said.

We can have a very good product but we still have to be good sellers of it.

Some times, a good seller trumps a bad product. That why some good products don’t gain so much traction in the beginning.

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Europe can have more opportunities to grow than US in marketing financial products.

The Europeans are still heavily biased towards traditional banking products like savings/term accounts, even with negative real returns due to the ultra-low interest rates and adjusted to inflation.

Independent asset managers like Global X can benefit from niche strategies that the big players simply ignore. E.g. the HanETF Bitcoin (BTCE) with 1.3B USD AUM in just 10 months (Inception Date: 08/06/2020) and excluded to retail investors in UK thanks to FCA.

And we don’t have some much information about the financial industry in China. I saw some academic paper stating that the largest money market fund in the world was Chinese from Ant Financial. It seems due to some political actions, it’s being downsized:

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ETFs in Europe - March 2021

The Leaders

The Laggards

The Biggest

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Correlations - Sectors (with monthly data)

1 Year

3 Years

5 Years

Source: Morningstar Direct

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ETFs in Europe - April 2021

The Leaders

The Laggards

The Biggest

Source: Morningstar

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In April, the Crypto ETNs and Commodities ETCs ruled (50% each of the best 20).

(In March, the top 20 best performers included 17 Crypto ETNs.)

With 21Shares and WisdomTree (ETNs/ETCs providers) being the leaders in the number of ETPs present in the April’s 20 best performing.

Curious, no Bitcoin ETN in the best 20, but there are 4 of them on the list of the worst 20.

No ETFs in the top best 20, nor Equities or other “traditional” asset class.

Would be nice to do a “Crypto Pie” with the several 21Shares Crypto ETNs

(Bad luck for UK investors/brokers, due to the FCA.) :wink:

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